Shippers demand compensation for war losses
ISC chairman claims that the war risk surcharges, the shifting of trucks from Haifa to Ashdod, due to the closure of the port of Haifa as well as the extra storage costs, are estimated to be around NIS90 millions
Gad Schaefer, Israel Shippers' Council (ISC) chairman, said last week that the council had put forward a demand to the government for full compensation following the heavy cost burden Israeli shippers had to pay because of hostilities in the north of the country, during the second Lebanon war.
Schaefer added that the council did submit a claim for compensation which was apparently ignored by the government. Schaefer noted that the war risk surcharges, the shifting of trucks from Haifa to Ashdod, due to the closure of the port of Haifa as well as the extra storage costs, are estimated to be around NIS90 millions.
Schaefer also said that he had decided to set up a special committee to study the heavy financial burden shippers had to absorb. The committee will cooperate with special task force appointed by Avraham Hirchson, Israel's Minister of Finance, to study the issue of war risk surcharges applied by shipping companies between July-August 2006 and which cost the economy over US$1 million a day.
Shipping companies announced last July war risk surcharges of up to US$300 per TEU, to help defray massive war risk insurance hikes apparently imposed by marine insurers. The task force is headed by Accountant General, Dr. Yaron Zelikha who had been requested by the Minister to submit proposals in order to prevent similar economic damage in the future.
The ISC represents Israeli exporters and importers in negotiations with shipping companies, Israel Port Authorities, Israel Ministry of Transportation and other government offices and authorities. Council management - comprised of representatives of Israeli Chambers of Commerce, the Manufacturers Association of Israel, the Israel Export Institute, the Israel Ministry of Defense, Toam Import & Export Cooperative Society Ltd. and Agrexco Agricultural Export Co. Ltd. and other import and export companies.
Schaefer added that the council did submit a claim for compensation which was apparently ignored by the government. Schaefer noted that the war risk surcharges, the shifting of trucks from Haifa to Ashdod, due to the closure of the port of Haifa as well as the extra storage costs, are estimated to be around NIS90 millions.
Schaefer also said that he had decided to set up a special committee to study the heavy financial burden shippers had to absorb. The committee will cooperate with special task force appointed by Avraham Hirchson, Israel's Minister of Finance, to study the issue of war risk surcharges applied by shipping companies between July-August 2006 and which cost the economy over US$1 million a day.
Shipping companies announced last July war risk surcharges of up to US$300 per TEU, to help defray massive war risk insurance hikes apparently imposed by marine insurers. The task force is headed by Accountant General, Dr. Yaron Zelikha who had been requested by the Minister to submit proposals in order to prevent similar economic damage in the future.
The ISC represents Israeli exporters and importers in negotiations with shipping companies, Israel Port Authorities, Israel Ministry of Transportation and other government offices and authorities. Council management - comprised of representatives of Israeli Chambers of Commerce, the Manufacturers Association of Israel, the Israel Export Institute, the Israel Ministry of Defense, Toam Import & Export Cooperative Society Ltd. and Agrexco Agricultural Export Co. Ltd. and other import and export companies.
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